Founders look to buy Great Learning back
MUMBAI : The founders of Great Learning are trying to line up investors to buy back the online education provider from Byju’s, two people aware of the discussions said. The management buyback will allow the founders to continue to run the firm and receive equity payouts in return. The proposed buyback follows Byju’s efforts to monetize some of its assets to repay its lenders.
The edtech company is also in advanced talks to sell the US kids’ reading platform Epic, a deal that is likely to close first. The founders of Singapore-based Great Learning—Mohan Lakhamraju, Hari Krishnan Nair and Arjun Nair—sold a controlling stake to Byju’s in 2021 for $600 million in cash and stock. The deal included several milestone payments as well.
“It is in the interest of the incoming investor that the founding team and the management continue. Various structures are being discussed. It will be speculative to say what the final contour would be," said one of the people cited above.
To be sure, there could be other offers that the seller will consider to maximize returns. According to the second person, the founders could negotiate an additional equity stake post the buyback with an investor consortium. “Talks are at an initial stage for Great Learning.
A formal process is likely to be launched once the deal for Epic reaches a more definitive stage," the person said. A spokesperson for Great Learning declined to comment. Byju’s did not respond to a request for comment.
Read more on livemint.com
